The first phase of Omo Kuraz Sugar Factories Project
kicked off in South Omo Zone, Southern Regional
State, earlier this month with the preparation of
the land earmarked for the sites of the future
factories and plantations.
The project comprises the construction of six sugar
factories, sugar cane plantations, housing units,
and roads. It forms part of the 10 sugar factories
planned to be constructed nationwide by the end of
the five-year GTP period.
present, there are only three sugar factories in the
country. They are Metahara Sugar Factory, Finchaa
Sugar Factory, and Wenchi Sugar Factory.
Out of the 10 factories, three are expected to start
crushing sugar cane by 2013/14, according to Dereje
Gutema, deputy director general of factory projects
and preparation at Sugar Corp. another five
factories are to become operational by 2014/15,
while the remaining two are expected to become
operational by 2015/16, Dereje claimed.
Sugar Corp, the regulator of the sugar sector, was
established as the Ethiopian Sugar Development
Agency in 2006, before being renamed earlier his
fiscal year. It aims to make public sugar
enterprises efficient and implement the government’s
sugar development policies.
The Omo Kuraz Sugar Factories Project forms part of
the government’s five-year GTP plans to increase
sugar production from 314,000tn in 2009/10, to 2.3
million tonnes by the end of 2014/15. Out of this,
1.2 million tonnes are to be exported to earn the
country an estimated 661.7 million dollars,
according to the GTP.
South Omo Zone has already prepared the 150,000ht
that has been allotted for the project and
transferred it to the federal government, according
to Molloka Wubneh, chief administrator of the zone.
Out of the total, 200ht has been allocated for a
plant where sugar cane will be multiplied; 80ht of
this has been cleared for construction, of the
nursery Molloka claimed.
The study and design of Omo Kuraz Sugar Factories
Project was done at a cost of 118.3 million Br by
the state owned Ethiopian Waterworks Design &
Supervision Enterprise (EWDSE) in collaboration with
the Southern Ethiopia Design & Supervision
Enterprise (SEDSE), which will have a 40pc share in
The government has earmarked 225 million dollars for
each of the six sugar factories that will be
constructed by the Metal and Engineering Corp (MetEC).
MetEC comprises nine industries that formerly served
the Ministry of Defence (MoD). They were joined
under the umbrella of the corporation in 2010 and
engage in construction work for the public and
date, the government has advanced 120 million Br for
the initial stage, Molloka told Fortune.
MetEC is to also install the machinery in the
factories, while the Ministry of Construction and
Urban Development (MoCUD) will be responsible for
the construction of housing units for the employees
of the sugar plantations and factories.
The six sugar factories and plantations in the zone
are expected to create more than 150,000 fulltime
and part-time jobs in the zone. With a total area of
23,000sqm, South Omo Zone covers a quarter of the
Southern Regional State and has a population of
The population, comprising mostly pastoralists, were
included in discussions on the project from the
zonal level to kebeles and villages, and would
benefit from the project, Molloka claimed.
Dereje affirmed that the pastoralists of the Omo
River Valley would be beneficiaries of the project.
“The project would create huge employment
opportunities for the local community,” he told
Fortune. “It also comprises community development
components that include separate irrigation land for
the community living in the area to enable them to
earn a living from their own irrigation
addition to building a village for employees, around
750km of internal roads (in total) are to be
constructed, according to Molloka.
part of the project, a 132km road between Jinka and
an irrigation reservoir are under construction.
Another sugar factory is being planned in the zone,
according to sources in the zonal administration.
This would bring the total number of sugar factories
in the country to 14 upon its becoming fully
operational,. Sugar Corp confirmed that it is
revising its original five-year plan.